Northern Minerals Limited · ASX:NTU
Northern Minerals — Non-Deal Roadshow (September 2019)
36 slides from Northern Minerals's roadshow presentation, Sep 11, 2019
Slide 1: Investor Roadshow September 2019
For personal use only Investor Roadshow September 2019 Presented by George Bauk CEO / MD 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). For personal use only This document is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with and ful
Slide 3: Our Aspiration
Our Aspiration For personal use only Principal supplier of ethically produced Rare Earth metals and separated products from the world’s largest Heavy Rare Earth Element inventory within 10 years A ten year $228m journey Over the next 18 months our main focus: Accelerated exploration aiming to expa
Slide 4: Health and Safety
Health and Safety For personal use only No LTI at the operation for 2 years; Annual injury performance TRIFR reached zero in June 2019; 12 Emergency Response training – e.g. confined space rescue; 10 Improvement in Safety Culture; Enhancing safety team. 8 Frequency Rate 6 4 2 0 Total Recor
Slide 5: Environment
Environment For personal use only Committed to ethically produced rare earths; Environmental Management System in place; Updated Mine Closure Plan submitted to DMIRS; Progressive rehabilitation as areas become available; Expanding the environment team; Ore sorter approvals underway; Di
Slide 6: Browns Range East Kimberley, WA
Browns Range East Kimberley, WA For personal use only ASX:NTU << AUSTRALIAN DYSPROSIUM >> 6
Slide 7: Product separation
Product separation For personal use only Upstream Midstream Downstream Refining/recycling Alloy and Component Extraction Beneficiation Separation Oxide End-use Hydrometallurgy Magnet To metal manufacture manufacture manufacture Our Aspiration Mixed Principal supplier of ethically Separated Dy to met
Slide 8: Value proposition
For personal use only Value proposition Globally significant Initiatives Browns Range is one of a few non- Several projects underway, including ore Chinese producers of dysprosium sorting and separation, to increase value EV growth & military use Exploration upside A key ingredient in permanent magn
Slide 9: Dysprosium – critical to the EV evolution
Dysprosium – critical to the EV evolution For personal use only With each electric vehicle using just over 100g of dysprosium, the company understands that demand may increase to over 3,500tpa by 2030. With over 98% of Dy production from China, there is strong interest in the US and globally for new
Slide 10: Rare Earths news coverage
Rare Earths news coverage For personal use only ASX:NTU << AUSTRALIAN DYSPROSIUM >> 10
Slide 11: The competition is unsustainable
The competition is unsustainable For personal use only Southern China in situ leach mining operation Northern Minerals Browns Range 98% of world’s heavy rare earths produced by China; These types of operations are being phased out, Many operations are in situ leach operations, which however th
Slide 12: Dysprosium price is up 58% since the start of 2019
Dysprosium price is up 58% since the start of 2019 For personal use only Dysprosium Oxide 99%min China US$/kg D y s p r o s i u m o x i d e 9 9 %m i n c h i n a U S $ / k g 950 280 850 260 750 650 240 DY US$/KG DY US$/KG 550 220 450 200 350 180 250 160 150 Source: Asian Metals ASX:NTU << AUSTRALIAN
Slide 13: Quality offtake partner - thyssenkrupp
Quality offtake partner - thyssenkrupp For personal use only Northern Minerals has entered into an offtake agreement with thyssenkrupp Materials Trading GmbH (thyssenkrupp) for all mixed heavy rare earth carbonate from the Browns Range Pilot Plant Project, including all stockpiled product. The agree
Slide 14: Browns Range pilot plant flowsheet
Rare Earth Magnetic Dryer Kiln Carbonate Separation Water Leach Precipitation For personal use only Browns Range pilot plant flowsheet Xenotime Concentrate Stockpile Rare Earth Carbonate Crushed Bagging Ore Stockpile Tails Crusher Ball Mill Flotation CCD Purification ASX:NTU << AUSTRALIAN DYSPROSIUM
Slide 15: Debottleneck project
Debottleneck project For personal use only Bottlenecks in the Pilot Plant process that are preventing nameplate capacity being achieved were identified during commissioning through to early 2019. Work was initially delayed due to financial constraints and a A$2.1M budget was approved in April 2019 w
Slide 16: Ore sorting – a game changer
For personal use only Ore sorting – a game changer Steinert ore sorter machine purchased; Front end engineering & design nearing completion; Process design frozen with detailed engineering design to commence; Equipment and installation package RFQs being prepared and tendered; Subject to a
Slide 17: Rare earth separation scoping study underway
For personal use only Rare earth separation scoping study underway Scoping study commenced to investigate downstream processing of mixed rare earths into separated rare earth oxides; U.S.A based K-Technologies Inc selected to undertake bench scale testwork and Scoping Study; Samples dispatched
Slide 18: Staged development plan
Staged development plan For personal use only Test Pilot Plant Mine xenotime ore Produce mixed RE carbonate Export to offtake customers Refine Project Validate & refine flowsheet 02 Implement ore sorting Improve xenotime conc. grade Investigate plant efficiencies Develop Full Project 03 Economies of
Slide 19: Exploration underway in 2019
For personal use only Exploration underway in 2019 The Browns Range dome is a massive geological feature covering 1,500km 2 and stretching 60km x 30km most of which hasn’t been effectively explored New discoveries 20+ year life target High-grade discoveries made in Focus on growing mine life from 11
Slide 20: 2019 & 2020 Exploration Program
2019 & 2020 Exploration Program For personal use only Exploration focus on high-grade, near surface deposits (Unconformity-related) 2019 2020 onwards A$3.5m program for remainder of 2019 including: A$6m program for 2020/21 including: Up to 10,000m of RC and RAB/Aircore drilling Up to 20,000m of
Slide 21: Dazzler Mineral Resource
For personal use only Dazzler Mineral Resource TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Category Mt % kg/t kg/t kg/t % kg Indicated - - - - - - - Inferred 0.14 2.23 2.08 12.79 0.27 93 3,200,000 Total 0.14 2.23 2.08 12.79 0.27 93 3,200,000 REO % of Total REO La2O3 1.20 CeO2 3.44 Pr6O11 0.48 Nd2O3 2.21 Sm2O3 1
Slide 22: Strengthening our balance sheet
For personal use only Strengthening our balance sheet In the year 2019 to date we have: announced A$100m in equity raised and banked A$72m to date; repaid A$27 million to close out Brevet R&D loan; repaid the Lind facility; Included in the A$100m above, is A$20m subscription announced – subj
Slide 23: NTU Board
For personal use only NTU Board Colin Bin George Adrian Xiaohua Ming Mark McCavana Cai Bauk Griffin Liu Lu Xue Colin McCavana - Non-executive Chairman (appointed 2006) Ming Lu - Non-executive Director (appointed 2018) CM Mr McCavana has more than 35 years of management experience worldwide in the ea
Slide 24: Corporate overview
Corporate overview For personal use only Ordinary Shares as at 5 September 2019 2,544M Options, Performance Rights & Convertible Notes as at 119M 5 September 2019 Market Capitalisation as at 5 September 2019 $160M Cash (30 June 2019) $8.1M Debt (as at 31 August 2019): ATO (under appeal with AusIndus
Slide 25: In conclusion
For personal use only In conclusion First rare earth carbonate pilot plant production in October 2018, following practical completion including first shipment in December 2018 Pilot plant project to demonstrate and assess economic and technical feasibility of larger operation thyssenkrupp offtake si
Slide 26: Thank you
For personal use only Thank you Contacts George Bauk, Managing Director & CEO gbauk@northernminerals.com.au Mark Tory, Chief Financial Officer & Company Secretary mtory@northernminerals.com.au Northern Minerals Andrew Rowell, Investor Relations Director, Cannings Purple Level 1, 675 Murray Street We
Slide 27: Appendices
For personal use only APPENDICES ASX:NTU << AUSTRALIAN DYSPROSIUM >> 27
Slide 28: Corporate leadership
For personal use only Corporate leadership Our people embody the Northern Minerals SPIRIT, a culture of continually striving to deliver exceptional outcomes, leadership and improvements. George Bauk Robin Wilson Managing Director and CEO Geology and Exploration Manager MD Since 2010, George has lead
Slide 29: Operational leadership
For personal use only Operational leadership Our team of operational specialists have years of experience in the production of rare earths. Having experts in their fields allows us to maximise value for shareholders. Robin Jones Eben Van Rooyen Chief Operating Officer Engineering Manager COO Driven
Slide 30: Filling the supply gap
For personal use only Filling the supply gap Chinese illegal production is expected to continue falling as the Government cracks down. Even with efficiencies in electric motors, the supply/demand gap is expected to continue widening. Browns Range Full-scale potential Browns Range PP production => De
Slide 31: Iceman discovery
For personal use only Iceman discovery Width From Estimated Hole ID To (m) % TREO (m)* (m) pXRF grade BRIR0001 No significant results BRIR0002 11 13 24 4.83 4% BRIR0002 2 37 39 0.16 BRIR0003 8 27 35 0.37 0.6% BRIR0004 7 26 33 1.20 3% BRIR0005 No significant results BRIR0006 1 16 17 1.28 BRIR0007 7 4
Slide 32: Mineral Resources by deposit
TREO Dy2 O3 Y2 O3 Tb4 O7 HREO TREO Deposit Classification Mt % kg/t kg/t kg/t % kg For personal use only Indicated 2.88 0.84 0.74 4.89 0.11 89 24,195,000 Wolverine Inferred 1.97 0.89 0.76 5.15 0.11 88 17,588,000 Total 1 4.85 0.86 0.75 4.99 0.11 89 41,786,000 Indicated 0.12 1.8 1.62 10.98 0.22 94 2,1
Slide 33: Ore Reserves
For personal use only TREO TREO Dy2O3 Dy2O3 Tb4O7 Tb4O7 Y2O3 Y2O3 Deposit Class Mt kg/t kg kg/t kg kg/t kg Kg/t kg OPEN PIT Wolverine Probable 0.72 6.17 4,458,000 0.55 400,000 0.08 57,000 3.6 2,598,000 Area 5 Probable 0.47 2.24 1,048,000 0.14 65,000 0.02 10,000 0.99 463,000 UNDERGROUND Wolverine Pro
Slide 34: Targeted annual mixed carbonate production
For personal use only Targeted REO contained in mixed RE Annual carbonate production (000s kg) Lanthanum 5.8 Cerium 15.2 Product specification available for REC Praseodymium 2.8 Neodymium 10.6 REC samples validated by several downstream separators Samarium 11.4 Europium 2.4 REC suitable for solvent
Slide 35: Beyond Browns Range
For personal use only JOHN GALT Beyond Browns Range Rock chip samples from the Boulder Ridge project confirm high-grade Heavy Rare Earths (HRE) Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE – up to 99% Reinforces significant growth potential in Browns Range
Slide 36: For personal use only
For personal use only ASX:NTU << AUSTRALIAN DYSPROSIUM >> 39
Northern Minerals — Non-Deal Roadshow (September 2019) on 6ix